This report is from today’s TNC’s Daily Open, our international markets update. TNC Daily Open keeps investors informed on everything they need to know, no matter where they are.
What To Note Today
China’s GDP Grew By 5% In 2024
China’s National Bureau of Statistics reports that the country’s economy grew by 5% annually in 2024, meeting Beijing’s stated goal of “about 5%.” As Beijing’s stimulus measures took effect, the GDP grew 5.4% in the fourth quarter, exceeding the 5.0% forecast by a Reuters survey of experts. Nevertheless, experts hope for additional measures to strengthen the nation’s economy.
S&P 500 Ends Three-Day Winning Streak
The S&P 500 ended its three-day winning streak on Thursday as U.S. markets declined. As concerns about inflation subsided, Treasury yields further declined. Friday saw mixed results for Asia-Pacific stocks. The announcement of China’s 2024 GDP numbers caused the markets in Hong Kong and mainland China to rise.
After announcing a successor to its Switch device, Nintendo’s shares slumped by 4.6%, while Japan’s Nikkei 225 declined 0.45%.
Apple Drops
On Thursday, Apple’s stock fell 4%, bringing losses since its last peak in December to about 12%. The decline follows a study released on Thursday by market research firm Canalys, which stated that the iPhone manufacturer has dropped to third place in 2024 smartphone sales in China, behind domestic producers Vivo and Huawei.
U.S. Treasury Secretary Candidate Testifies
On Thursday, the Senate Finance Committee heard testimony from Scott Bessent, the Treasury secretary nominee of U.S. President-elect Donald Trump. Hedge-fund manager Bessent characterized U.S. spending as “out of control,” dismissed the notion of a potential U.S. digital currency, and claimed that Trump’s proposed policies won’t lead to inflation during the session.
Bottom Line
The decline in Apple stock The S&P ended its three-day winning streak on Thursday.
Apple shares saw their lowest day since August 5 due to reports of declining iPhone sales in China. In sympathy, other “Magnificent 7” stocks also slumped: Alphabet sank about 1.4%, Nvidia lost over 2%, and Tesla fell 3.4%.
Thus far in 2025, Apple has been the Magnificent Seven’s worst-performing stock.
With all seven of the “Magnificent 7” stocks—which accounted for almost half of the gains made by the S&P 500 in 2024—finishing the day lower, the broad-based index could not maintain its Wednesday momentum.
The tech-heavy Nasdaq Composite sank 0.89%, the Dow Jones Industrial Average declined 0.16%, and the S&P fell 0.21%.
This is true even though the earnings season has gotten off to a great start. According to FactSet statistics, 77% of the reporting companies have exceeded expectations.
Morgan Stanley and Bank of America both released earnings that exceeded forecasts. However, they eventually failed to raise indices, indicating that technology remains a key factor in stock market performance.
Keith Buchanan, senior portfolio manager at Globalt Investments, stated, “Earnings have started out with the banks being definitely a positive, but it seems there’s going to have to be more than that, and that’s what today’s action seems like.”
However, if inflation appears to be under control later in the year, tech companies and markets may gain ground.
In a discussion with reporters on Thursday, U.S. Federal Reserve Governor Christopher Waller stated that he “can certainly see rate cuts happening sooner than maybe the markets are pricing in” if inflation data is mild.
In a more upbeat tone, Waller even hinted that “four cuts, three cuts, depending on what the data tells you this year” would occur.
If that were to occur, shares of Apple and other rate-sensitive tech firms might defy gravity and rise once more.
